MICROCAPITAL BRIEF: European Bank for Reconstruction and Development (EBRD) Provides $1.3m Loan to Albanian Leasing Company LandesLease Serving Small and Medium-sized Enterprises

The European Bank for Reconstruction and Development (EBRD) has provided a EUR 1 million (USD 1.3 million) loan to LandesLease, an Albanian leasing company, to expand its services to small and medium-sized enterprises (SMEs).

Given the state of the economy in Albania it is still difficult for SMEs to find financing, and, by supporting LandesLease, EBRD aims to provide SMEs with an alternative mode of financing. The leasing sector is a nascent industry in Albania, representing “one percent of the country’s GDP”. According to a press release from the EBRD, the loan will “help LandesLease diversify its funding base and will support the company in its drive to provide more affordable financing tools to the SMEs in Albania”.

LandesLease, founded in 2005, leases vehicles, equipment and machinery primarily targeted for SMEs.

By: Christine Chang, Research Associate

About European Bank for Reconstruction and Development (EBRD):

The bank began operations in 1991 upon the agreement of 40 countries and is now owned by 61 countries as well as the European Investment Bank and the European Union. It aims to finance operations that are both commercially viable and assist development in 29 countries in Central Europe and Central Asia. It does this by providing loans, debt securities, equity investments, guarantees and technical assistance to micro and small businesses as well as commercial banks and non-bank microfinance institutions (MFIs). As of the end of 2008, EBRD has operating assets worth EUR 5.2 billion, the equivalent of over USD 7 billion.

Additional Resources:

EBRD press release: EBRD supports leasing company in Albania, April 22, 2010: http://www.ebrd.com/new/pressrel/2010/100422.htm

MicroCapital Universe: European Bank for Reconstruction and Development (EBRD): https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=European+Bank+for+Reconstruction+and+Development+%28EBRD%29

LandesLease website: http://www.landeslease-al.com/eng/index.htm

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